Overview
Marcus & Millichap is pleased to present Regal Estates, a well-located, 150-unit multifamily community situated at 105 S Academy Boulevard in the heart of southeast Colorado Springs, one of the region’s most dynamic and rapidly growing submarkets. Built in 1972, the garden-style property spans 5.18 acres and features an attractive unit mix of 5 one-bedroom units averaging 792 square feet and 145 two-bedroom units averaging a spacious 1,000 square feet offering renters more livable space than competing properties, with average unit sizes exceeding submarket norms by more than 18%.
Regal Estates presents a compelling value-add investment opportunity, with a recently vacated 30-unit building undergoing renovation to include in-unit washer/dryer installations, a highly desirable amenity that has already demonstrated strong demand and supports $100+ rent premiums. The infrastructure is being upgraded to support future washer/dryer expansion across additional buildings, allowing a new owner to scale the renovation strategy and capitalize on the substantial upside while benefitting from stable, in-place cash flow.
Strategically positioned just 3.8 miles from Downtown Colorado Springs and under 10 minutes from the Colorado Springs Airport, the property is also located near major employment hubs including Fort Carson (30,000+ personnel), Peterson Space Force Base, U.S. Air Force Academy, and several defense and aerospace contractors such as Lockheed Martin, Northrop Grumman, and Raytheon. Nearby retail centers include Citadel Mall, Walmart Supercenter, and Safeway, while top-rated recreation options like Garden of the Gods, Cheyenne Mountain State Park, and Pikes Peak are just a short drive away.
With limited new supply, falling vacancies, and rents still offering a 46% discount to homeownership costs in the area, Regal Estates is positioned to capture long-term rental demand from a growing and diverse tenant base. The combination of strong fundamentals, clear upside, and attractive pricing relative to comps makes this a rare opportunity to acquire a high-performing asset in one of Colorado’s most resilient multifamily markets.
Investment Highlights
Proven Value-Add Upside with Washer/Dryer Renovations
Regal Estates offers a clear and scalable value-add strategy through the implementation of in-unit washer/dryers. One entire 30-unit building has already been upgraded, resulting in rent premiums of $100+ per unit, and there is a waitlist for these units, highlighting strong renter demand. With plumbing and electrical infrastructure improvements already identified, investors can confidently expand this program across additional units to unlock meaningful rent growth and drive asset value.
Large, Differentiated Unit Sizes Offer Competitive Advantage
With an average unit size of nearly 1,000 square feet, Regal Estates provides some of the most spacious floorplans in the submarket, exceeding local averages by more than 18%. These oversized units are especially attractive to families and long-term renters who prioritize space, privacy, and functionality, helping to enhance retention and reduce turnover.
Strong In-Place Income with Significant Upside Through Re-Leasing
The property currently generates a net operating income of $863,294, with Year 1 projections reaching $1.29 million, representing a 49% increase in NOI. This upside is driven by a combination of lease-up of renovated units, reduction of loss-to-lease, and full capture of market rents through organic re-leasing efforts. The well-documented path to income growth offers investors a near-term value inflection point.
Rent Affordability Supports Future Increases Without Overstretching Tenants
At current proforma rents of $1,310/month, Regal Estates maintains a 26% rent-to-income ratio, comfortably below the industry affordability threshold of 30%. This suggests ample room for future rent increases without negatively impacting tenant retention or stretching household budgets, particularly as wages rise and Colorado Springs continues to attract in-migration from higher-cost metros.
Compelling Discount to Homeownership in the Immediate Area
Renting at Regal Estates is 46% less expensive than owning a home within a one-mile radius, equating to a monthly savings of over $1,150 for residents. As home prices continue to rise and interest rates remain elevated, this affordability gap positions Regal Estates as an attractive long-term rental option, insulating the property from renter migration to homeownership.
Strategic Location Near Major Economic and Military Employers
Regal Estates is ideally located near some of Colorado Springs’ largest employers, including Fort Carson, Peterson Space Force Base, Colorado Springs Airport, and major defense contractors like Lockheed Martin, Raytheon, and Boeing. With over 41,000 combined employees in close proximity, the property is well positioned to attract and retain a stable tenant base of military personnel, civilians, and contractors seeking convenient access to work.
Southeast Submarket Offers Supply Constraints and Strong Demand Tailwinds
The southeast quadrant of Colorado Springs has seen limited new development, and the broader market has experienced a 65% decline in construction pipeline activity from its peak. Meanwhile, absorption remains at record highs. This creates a tightening rental environment where renovated legacy assets like Regal Estates can thrive without facing direct competition from newer Class A properties.
Well-Positioned Amenities with Opportunities for Enhancement
The community already offers appealing amenities such as solar panels, secured entries, grills and pergolas near the pool, and onsite laundry. Potential improvements, including a new dog park, grill stations, and potential office-to-unit conversion, offer low-cost ways to further enhance tenant experience and rentability, while increasing income and reducing concession needs.
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